Later LipaKenya’s technology-driven consumer credit platform plans to expand into new markets in Africa after raising $ 12 million in pre-Series A funding.
The Equity and Debt Finance Rounds were attended by Cauris Finance, Lateral Frontiers VC, GreenHouse Capital, SOSV IV LLC, Sayani Investments and Axian Financial Services.
Founded in 2018, the startup is a postpaid (BNPL) company that is currently planning to enter Tanzania, Ghana and Nigeria and expand into existing markets such as Kenya, Uganda and Rwanda.
“We are excited to work with investors to grow and expand into more markets in Africa. In the next 12 months, we will open up 3-5 new markets in Africa. Despite this, we aim to increase and double our presence in the existing market, “said Lipa Later co-founder and CEO. Eric Muri..
Lipa Later has exclusive partnerships with retailers across these markets, allowing shoppers to pay for their products in installments. For example, a partnership between Lipa Later and French retailer Carrefour, which has a regional presence, allows customers to pay for items, including furniture, electronics and even fresh food, in monthly installments.
The customer pays a monthly interest (about 2.3% for Carrefour) on the credit provided. Startups plan to cover more countries across Africa and build more partnerships with merchants.
“LipaLater not only changes the consumer credit situation across Africa, which was previously inaccessible to most people, but is also driving the future of shopping, e-commerce and payments. They truly make this a product and customer. It has proven to be incredibly scalable across multiple markets, taking the lead, benefiting both merchants and consumers, “said Ruby Nimkar, a partner at GreenHouse Capital.
Lipa Later’s unique credit scoring and machine learning system allows consumers to sign up and get credit limits almost instantly. Startups have also built a BNPL API that integrates into their e-commerce platform. This allows merchants to sell their products directly to consumers, who can remit monthly installments of purchased items.
The new funding will be added to a private 2020 investment by the Tokyo-based Uncovered Fund. The fund invests in early and seed stage startups in Africa. Lipa Later was one of five funded startups.
Lipa Later is one of Kenya’s leading players in the BNPL market, competing with Aspira, Miti, Flexpay Technologies and Julla. According to this 2021 study on Kenya, Kenya’s BNPL payment industry is growing strongly due to the rapid penetration of e-commerce and the effects of the economic slowdown caused by the COVID-19 pandemic. Kenya’s BNPL industry is expected to record a CAGR of 30.8% between 2021 and 2028. The total commercial value of BNPL is expected to rise from $ 51.6 million in 2020 to $ 589.5 million in 2028.
Lipa Later competes with South Africa’s Payflex (recently acquired by Australia’s BNPL Zip) and PayJustNow, and Nigeria’s PayQart and Carbon to cross Africa, where opportunities are plentiful as e-commerce and alternative credit sources grow. I have to confront. zero.
Kenyan BNPL startup Lipa Later eyes more African markets after raising $12 million – TechCrunch Source link Kenyan BNPL startup Lipa Later eyes more African markets after raising $12 million – TechCrunch
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